London man agreed to sell arms to terror group, jury told

A London-based arms dealer plotted to sell surface-to-air missiles and other arms to a Colombian Marxist rebel group in breach of British anti-terrorism laws, the Old Bailey was told yesterday. Syed Mohsin Bukhari allegedly agreed to supply 200 Russian-made SA18s - also known as Iglas - as well as rocket-propelled grenades and AK47 rifles at a meeting at a London hotel in December 2002.

But unknown to Mr Bukhari, the man with whom he was negotiating was an undercover FBI agent called David Sullivan and their conversations were recorded, Julian Bevan, for the crown, told the court. Mr Bukhari, 46, learnt the truth in July 2004 when British police, working with their American counterparts, raided his home in Hendon, north London, and seized documents allegedly relating to another arms deal in Pakistan.

At first he had denied being an arms dealer and claimed that he had met Mr Sullivan to broker a legitimate deal to supply helicopters to Pakistan. But when he learnt that his alleged comments about supplying missiles from eastern Europe to the Farc rebel group had been taped he "changed his position significantly", the prosecution told the court. "His final position was that all he had said to Mr Sullivan was hocus pocus," said Mr Bevan.

This was not a truthful answer, Mr Bevan said. Instead, Mr Bukhari, who was motivated by money, had done everything he could to "clinch the deal", believing the weapons, worth an estimated £38m, were destined for the rebels.

Mr Bukhari, whose family owns companies in the UK and Pakistan, denies entering into an arrangement to supply weapons and military hardware contrary to the Terrorism Act.

The prosecution said that at Mr Bukhari's first meeting with Mr Sullivan at the Renaissance hotel, the FBI agent made repeated references to smuggling, the falsification of documents, bribery and corruption. Mr Sullivan had also made it clear that he was an agent for the terrorist group Farc, and not for the Colombian government.

Mr Sullivan had introduced Mr Bukhari to another undercover FBI agent, a Mr Ruben posing as a finance man for the Farc and South American drugs gangs, Mr Bevan said. Throughout the discussions Mr Bukhari had told Ruben he was "positive" he could obtain the ground-to-air missiles and other weapons.

The meetings had continued for more than one year, Mr Bevan said. But no end-user certificate was forthcoming and the weapons were not delivered.